CEO experience apparently trumps diversity in board searches
White men have returned to the majority of new director appointments at S&P 500 companies for the first time since 2017, according to a recent Bloomberg report by Jeff Green.
Data from ISS-Corporate shows that 55% of new directors named so far in 2025 are White men, a marked change from recent years when diversity efforts were more prominent.
Green attributes this shift to boards’ renewed focus on candidates with CEO backgrounds, as companies seek leaders who can help them navigate economic and political uncertainty.
“What was grossly underappreciated five years ago — a candidate that was male, stale and pale — is now very much at the table to be considered against any and all other candidates,” said Robert Travis, managing partner at Boyden, in the Bloomberg article.
The emphasis on CEO experience means boards are often selecting from a pool that is still disproportionately White and male.
Push for DEI fades
At the same time, the push for diversity, equity, and inclusion (DEI) has faded as a top priority for many boards, says Green.
Women filled about a third of new board seats this year, down from a peak of 44% in 2022, while non-White directors made up just 20% of new hires, a sharp drop from 44% in 2021.
Recruiters told Green that the current political climate, including the Trump administration’s anti-DEI stance, has made it easier for boards to make these appointments without facing the same level of scrutiny as in previous years.
Recruiter James Drury said that nominating committees are prioritizing candidates with specific corporate experience to help them navigate the current environment according to the Bloomberg article. His research shows that 72% of companies said diversity was a top priority in 2020, compared to just 5% today.
HR leaders across the world are taking a second look at their diversity, equity, and inclusion (DEI) policies amid the ongoing corporate withdrawal from such efforts, according to a separate report. Findings from the Human Resources Certification Institute (HRCI) showed that 31% of HR leaders said their organisations are making changes to their DEI efforts.
Among them, 69% said they are "reevaluating programs." Another 15% said they are eliminating them, while nine percent are freezing funding.
Trump executive order shifts DEI landscape
This change in boardroom demographics comes after President Trump’s January 2025 executive order, which directed federal agencies to end “discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements” related to DEI.
The order revoked several previous executive actions promoting diversity in federal hiring and contracting and instructed agencies to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.”
Nearly half of organisations that dropped their diversity, equity, and inclusion (DEI) policies since US President Donald Trump's re-election are experiencing a decline in employee morale, according to an earlier poll.
